Huabao Flavours & Fragrances Won the “Golden Quality Award for Corporate Governance”

On December 23, the “2020 High Quality Development Forum for Listed Companies & ‘Golden Quality’ Award Ceremony”, sponsored by Shanghai Securities News, was held in Shanghai. Themed by “Building New Development Pattern and Delivering the Market Forces”, the Forum in this year aimed to promote the standardized development of China’s capital market and improve the governance level of listed companies. By virtue of its perfect corporate governance system and sound, effective and transparent corporate governance practices, HuabaoFlavours & Fragrances Co., Ltd. (“Huabao” or the “Company”) was honored with the “Golden Quality Award for Corporate Governance”.

JIANG Xiaoyong, Deputy Director of the Listed Company Supervision Department of China Securities Regulatory Commission, delivered a keynote speech

Firstly, CHEN Guojun, Secretary of the Party Committee and Board Chairman of Shanghai Securities News, delivered a welcome speech on behalf of the sponsor; and HUANG Yong, member of the Party Committee and Deputy General Manager of China Securities Investor Services Center, delivered a speech. JIANG Xiaoyong, Deputy Director of the Listed Company Supervision Department of China Securities Regulatory Commission, SONG Zhiping, President of China Association for Public Companies, DONG Guoqun, Deputy General Manager of Shanghai Stock Exchange, and FU Yan, Deputy Director of Shenzhen Stock Exchange Listed Companies Regulatory Commission, attended the Forum and made keynote speeches.Among them, JIANG Xiaoyong said in his keynote speech that: the capital market is the bond between entity, sci-tech and capital, as well as the bond between the financing parties and the investors; promoting the quality improvement of listed companies is an inevitable requirement for the capital market to implement the national strategy and facilitate high-quality economic and social development; without high-quality listed companies, there will be no high-quality capital market; facilitating the quality construction of listed companies is a key move for China’s real economy to cope with the complex situation, take preemptive measures and gain the initiative; to improve the quality of listed companies, we should speed up the formation of a group of listed companies that meet the requirements of high-quality development, give better play to the role of listed companies as the “leader geese”, and strive to drive the growth of industrial chain through the development of listed companies, form a competitive industrial cluster, and lead the long-term economic development.

Thousands of listed companies participated in the selection of the “Golden Quality Award for Corporate Governance”, and finally 59 outstanding ones won the award. By virtue of its perfect corporate governance system, Huabao was fortunate to be the only enterprise in the flavors industry to win this award.

Since its being listed, Huabao has continuously achieved high-quality development through a sound, effective and transparent corporate governance system. In 2019, the Company realized the operating revenue of RMB 2.185 billion and the RMB 1.118 billion worth’s of net profit after deducting non-recurring gains and losses. In 2020, the Company actively strengthened the R&D of new products, optimized the Company’s product structure, and constantly improved its business competitiveness. Under the impact of the COVID-19 pandemic, the Company still realized the operating revenue of RMB 1.443 billion and the RMB 723 million worth’s of net profit after deducting non-recurring gains and losses in the first three quarters, among which the operating revenue in Q3 was RMB 507 million, up 3.42% on a month-on-month basis, and the net profit after deducting non-recurring gains and losses was RMB 253 million, up 16.10% on a month-on-month basis. In the future, the Company will continue to adhere to the corporate vision of “Flavor Your Life”, uphold an international perspective to integrate research resources at home and abroad, drive the endogenous growth through technology upgrading and product innovation, achieve epitaxial growth through M&A and industry consolidation, and give full play to thesynergistic effect of the upstream and downstream industrial chains, thus making the Company’s main business bigger and stronger and actively make high returns investors.